A decline ratio quantifies the proportion of declined transactions relative to the total number of attempted transactions, providing valuable insights into the effectiveness of payment approvals. An elevated decline ratio may indicate potential problems within the payment processing framework or the fraud detection mechanisms, which might inadvertently prevent legitimate transactions from being completed. For businesses, particularly in critical sectors such as travel, it is essential to sustain a low decline ratio to optimise successful bookings, safeguard revenue, and improve customer satisfaction.
In the travel industry, it is crucial to manage the decline ratio effectively to avoid lost bookings and minimise customer pain. Due to the industry's dependence on online and international transactions, travel companies encounter specific challenges in payment processing, including elevated risk evaluations, global security protocols, and possible currency exchange. These elements can lead to payment declines, even for valid transactions, causing revenue loss and eroding customer confidence. Maintaining a low decline ratio is vital for travel businesses to provide seamless payment processing, allowing customers to finalise their bookings without unwarranted obstacles.
A significant decline ratio can adversely affect customer satisfaction, as potential customers may abandon the booking process if their payment attempts are consistently rejected. This issue is particularly critical for travel companies, as each unfulfilled booking signifies a lost opportunity for revenue. Payment declines can occur for a variety of reasons, such as outdated customer information, stringent fraud detection protocols, or connectivity issues between the payment processor and the issuing bank. Furthermore, international transactions often experience elevated rejection rates due to cross-border risk evaluations, complicating efforts for global travel firms to sustain a low decline ratio.
In addition, elevated decline ratios can harm a company's standing with acquirers, which may result in increased transaction fees or more stringent processing conditions. To address these challenges, travel businesses must employ comprehensive tools to analyse decline trends, identify underlying causes, and develop strategies that effectively balance security measures with customer convenience.
The Felloh platform assists travel businesses in enhancing their decline ratios by implementing intelligent routing and decline analysis tools. Through smart routing, Felloh channels transactions to the most appropriate payment processors, thereby reducing the chances of unnecessary declines and improving payment success rates. The platform's sophisticated analytics tools allow businesses to examine decline trends, pinpoint underlying causes, and modify settings to ensure a higher approval rate for legitimate transactions.
By lowering the decline ratio, Felloh not only boosts booking completion rates but also enhances customer satisfaction, as clients encounter fewer interruptions during the booking process. Furthermore, Felloh’s real-time data insights and adherence to global payment standards equip travel businesses with the agility to navigate complex payment situations, ensuring transaction security while maintaining a seamless user experience. Through these customized solutions, Felloh empowers travel companies to optimise payment approvals, fostering both revenue growth and customer loyalty.
Felloh’s automatic reconciliation feature matches and verifies transactions from three payment methods—card payments, Open Banking, and bank transfers—ensuring that every transaction is tracked and settled accurately with your back-office systems.
